Insight

Wanda says Disney no match for Wanda's "Wolf Pack"

05/24/2016|9:33:31 AM|Bloomberg

Disney should not have come to mainland China, says Wang; Chinese conglomerate aims to reach $100 billion sales by 2020

Chinese billionaire Wang Jianlin, whose Dalian Wanda Group is in the midst of launching a chain of theme parks and entertainment complexes around China, has taken aim at rival Walt Disney ahead of the Magic Kingdom’s opening next month in Shanghai.

Disney “should not have come to China,” and Wanda aims to surpass the rival entertainment company as the world’s largest tourism company by 2020, Wang said in an appearance on a China Central Television show which aired on Sunday.

“One tiger is no match for a pack of wolves,” he said on the talk show. “Shanghai has one Disney, while Wanda, across the nation, will open 15 to 20.”

Wang said that Disney lacked innovation in its business model. "Over the next 10 to 20 years, Wanda must make Disney be unprofitable," he said. "Every park of ours has its own business model, with constant innovation and combines indoor and outdoor activities.”

While Wang acknowledged that Disney, as the world’s largest tourism business, is a very good company, he’s confident that "Wanda will win out."

Disney’s vast intellectual property rights has become a burden and that Disney seldom researches new business models, he said.

The billionaire also spoke publicly over the weekend for the first time about the ongoing privatisation of his Hong Kong listed property arm.

In the interview, Wang said Dalian Wanda Commercial Properties “must be taken private,” as its undervaluation in Hong Kong market makes Wang “feel sorry” to shareholders and investors.

“I’ve been in many industries and made many investments, many of them made with my friends, we’ve made a lot of money for every deal, except for this one,” Wang said.

Wanda Commercial’s Hong Kong shares have been suspended since April 25, pending disclosure of the price and timetable of its potential more than HK$30 billion general offer.